Business Brokerage Press: 2020 Small Business & Industries
Business Brokerage Press features Vetted Biz’s Patrick Findaro to go through business opportunities and industries based on SBA data in 2020.
Table of Contents:
Patrick Findaro, co-founder of Vetted Biz and Visa Franchise, offers a deep dive into “What’s Hot, What’s Not: 2020 Small Businesses and Industries.” In his presentation, he provides business brokers with insights on the latest trends and growth opportunities for business buyers and investors.
About Vetted Biz and Visa Franchise
Vetted Biz, co-founded by Patrick, is an analytics-driven platform providing prospective business buyers and brokers with industry insights based on SBA loan data, franchise information, and business metrics. Visa Franchise, also co-owned by Patrick, specializes in helping foreign nationals immigrate to the U.S. by investing in franchises.
“Our goal is to offer informed insights to empower both business buyers and brokers, providing real-time data and trends.”
Types of Business Buyers in 2020
- Financial Buyers: Interested in cash flow, these buyers often seek deals that maximize current and future financial returns.
- Strategic Buyers: Larger companies and franchisors use acquisitions as part of their growth strategy. They seek existing businesses, such as property management or commercial cleaning, to integrate into franchise systems.
- Individual and Lifestyle Buyers: Including retired corporate executives and foreign nationals, these buyers prioritize quality of life and often seek investment opportunities that support their U.S. visa applications.
Key Factors Business Buyers Prioritize
- Profitability: Buyers are examining year-to-date accounting statements and point-of-sale data to assess profitability.
- Recurring Revenue: Service businesses with repeat clients, like commercial cleaning, are highly desirable.
- High Margin: Examples include ice cream shops and barbershops where low-cost goods/services yield strong returns.
- Strong Liquidity and Management: Buyers prioritize businesses with reliable financials and strong management teams willing to assist with transitions.
Top Industry Opportunities for Business Brokers
Several sectors show resilience and growth potential amid COVID-19:
- Fast Food: Takeout and delivery-focused businesses thrive.
- Real Estate and Property Management: Particularly with vacation rentals seeing high demand in certain areas.
- Healthcare and Home Care: High growth, driven by aging populations.
- Cleaning Services: With increased demand for regular, sanitized spaces, cleaning businesses are in high demand.
- Pet Care: Rising pet adoption rates contribute to growth in grooming, daycare, and other services.
- Education: Supplemental education programs in science and technology are growing as parents seek ways to engage children.
The Rise of Ghost Kitchens
Ghost kitchens are emerging as a cost-effective solution for food service providers:
- Lower Overheads: Restaurants can operate solely for delivery and takeout, avoiding high rents and staffing costs.
- Opportunities for Franchisees: Ghost kitchens allow franchisees to expand offerings or test new markets without committing to traditional lease agreements.
SBA Loan Insights and Recovery Curves
Analyzing SBA loan data provides insight into industry resilience:
- Sharp Recovery: Industries like cleaning, maintenance, education, and business services are bouncing back quickly.
- U-Curve Recovery: Sectors like food and beverages, beauty, and real estate are seeing gradual recoveries as consumer confidence returns.
- L-Curve Recovery: Retail products and services, and certain fitness centers, are experiencing prolonged impacts as consumer habits shift.
Business Broker Q&A Highlights
- E-Commerce Trends: Small retailers are increasingly focusing on e-commerce strategies, with varied success based on product competitiveness.
- Automotive Industry: Reduced vehicle usage due to remote work impacts this sector. However, auto insurance and maintenance services remain stable.
- Ghost Kitchen Growth: This model provides a flexible, lower-cost approach to food service, with potential for franchise integration.
Final Remarks
Patrick concludes by offering business brokers an opportunity to trial Vetted Biz’s platform, designed to provide valuable insights into franchise and non-franchise businesses. With a focus on high-quality leads, Vetted Biz seeks to connect brokers with informed and motivated buyers, especially international clients seeking U.S. investment opportunities.
“We strive to deliver fewer, but better-qualified leads, connecting brokers to informed buyers ready to invest in U.S. businesses.”
Business brokers and industry professionals can stay updated with Vetted Biz’s insights and access further resources to better serve clients.